If you’re in need of quick cash in Quechee, Vermont, you may be considering payday loans. However, it’s essential to know that payday loans are prohibited in Vermont. In this article, we’ll explore the details of payday loans and why they’re illegal in Vermont.
What are payday loans?
A payday loan is a small, short-term loan with a high-interest rate. These loans are often taken out by people who need fast cash and have no other options. Borrowers typically provide post-dated checks or authorization to withdraw funds from their bank account on the date of their next paycheck.
Why are payday loans illegal in Vermont?
In 2012, Vermont became the first state to ban payday loans. This was due to concerns about the high-interest rates and fees associated with these loans. While payday lenders argued that they provided a necessary service for people in need of quick cash, Vermont lawmakers saw them as predatory lenders who trapped borrowers in cycles of debt and financial ruin.
Since then, other states have followed Vermont’s lead and enacted similar laws to ban payday loans or cap their interest rates.
What are the alternatives to payday loans in Vermont?
If you’re in need of cash in Vermont, there are several options to consider.
- Personal loans: These loans have lower interest rates than payday loans and offer longer repayment terms. You can borrow from a bank or credit union or use an online lender.
- Credit card cash advance: If you have a credit card, you can use it to get a cash advance. However, keep in mind that this option also comes with high-interest rates and fees.
- Government assistance programs: If you’re struggling financially, you may be eligible for government assistance programs like Medicaid or the Supplemental Nutrition Assistance Program (SNAP).
Interesting facts and statistics about payday loans in Vermont
- Vermont was the first state to outlaw payday loans in 2012.
- A 2016 study found that only 1% of Vermont households have taken out payday loans since the ban was enacted.
- The average interest rate on payday loans in the US is 391%.
- Payday loans trap borrowers in a cycle of debt, with the average borrower taking out eight loans per year and paying over $500 in interest fees.
Apply for a loan with TheGuaranteedLoans
While payday loans aren’t an option in Vermont, you can still apply for a personal loan with TheGuaranteedLoans. We’re a connector service that helps match borrowers with lenders who offer personal loans with reasonable interest rates and terms. Fill out an online application today and get the cash you need with the help of TheGuaranteedLoans.